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New payment system designs: causes and consequences James McAndrews, Research and Market Analysis Group, Federal Reserve Bank of New York and
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@MISC{_newpayment,
author = {},
title = {New payment system designs: causes and consequences James McAndrews, Research and Market Analysis Group, Federal Reserve Bank of New York and},
year = {}
}
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Abstract
Payment system design is changing. This article discusses these changes, the pros and cons of different designs and issues raised by the evolution of a variety of so-called ‘hybrid ’ systems. It suggests that there are many common elements in these developments and that outcomes combining lower settlement risk with lower liquidity costs may be possible. But in the end some trade-off may still need to be made between different objectives. Over the past decade the most popular design for high-value payment systems has changed, reflecting market needs and the concerns of central banks for systemic stability. Before 1990 most systems were designed on a deferred net settlement (DNS) basis but since then almost all major countries have moved to Real-Time Gross Settlement (RTGS) systems for high-value payments. They are now used widely around the world. More recently, however, hybrid systems, which seek to be liquidity-efficient, have been introduced in a small number of developed
Keyphrases
consequence james mcandrews new york federal reserve bank market analysis group new payment system design real-time gross settlement deferred net settlement different design so-called hybrid system high-value payment systemic stability payment system design settlement risk high-value payment system hybrid system major country popular design small number liquidity cost market need different objective central bank past decade many common element
